Opinions Gordon Reid
McDonaldsMCDDON'T BUYOct 24, 2012
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
You might be interested:
Half its business is NA, half international. Not a huge amount of growth, perhaps 5-6%. EPS growth of 7-8%. Opens a few new stores a year. More of a landlord, with over 90% franchised. Very high ROIC.
Only 20x PE today, down from historically high 20s. In his world, it's a staple not discretionary :) Yield is 2.65%.
Martin Cobb, ASIP
She owns MCD instead, because MCD owns the real estate of their branches, so they collect rent. Because they are global, MCD enjoys economies of scale. It's defensive.
Christine Poole
Was downgraded last Friday and today over fears they won't meet expectations this quarter, including disappointment over MCD's new chicken strips dish, that it won't turn things around. Rather, customer prefer heavily breaded chicken and the find these strips ugly. However, history says it has never paid to downgrade MCD. It's the king, offering good value and is highly well-run. The CEO will figure it out.
Great company and a wonderful franchise. Up until about February they were doing very well and then started to see same-store sales slide and raw material inflation eating the margins. Doing okay, but there are some cracks in the armour and there has been some slide in the stock price but not enough for him. They are still trading in the high teens in terms of multiple. International sales were growing at about 1.9% and domestically at 1.2%. He would prefer to see it in the low $80’s.